QMines has reached an agreement to acquire the Develin Creek copper-zinc project located 80 km northwest of Rockhampton in central Queensland, Australia, from Zenith Minerals.
The Develin Creek project’s proximity, as well as its high-grade copper and zinc resource, makes it a highly complementary addition to QMines’ Mt Chalmers copper and gold project, located 90 km west of Develin Creek. This acquisition is expected to enhance the potential development of combined resources.
The transaction involves a total consideration of A$4.5 million ($2.89 million) in cash and shares, in addition to work commitments.
Under the terms of the agreement, QMines will acquire a 51% stake in the copper-zinc project initially by making a cash payment of A$1.2 million and issuing A$1 million worth of QMines shares to Zenith. Subsequently, QMines will acquire the remaining 49% stake in the project for an additional A$1.3 million in cash and A$1 million worth of QMines shares within a 12-month period.
As part of the deal, QMines is obligated to complete 500 meters of diamond drilling and a detailed metallurgical study on the existing inferred mineral resource of the Develin Creek project within the next 12 months.
QMines Managing Director Andrew Sparke expressed the belief that the Develin Creek asset, in conjunction with the Mt Chalmers project, would provide the necessary scale to advance the Mt Chalmers project toward sustainable copper production.
Proceeds from the sale will be utilized by Zenith to fund its lithium and gold project portfolio, as well as for working capital.
Zenith’s Executive Chair, David Ledger, stated that the divestment allows the company to focus on its lithium assets while also providing immediate cash. The company plans to review its asset base and monetize projects as deemed appropriate.
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